Dollar retreats ahead of US data, euro on alert over Monte dei Paschi

Tokyo, December 22
The dollar lost some steam on Thursday, slipping from its 14-year-high against a basket of currencies as investors took profits before a batch of U.S. economic data due later in the day is published.
The dollar index, which measures the greenback against six major rivals, dipped 0.1 percent to 102.96. It has receded from the 103.65 marked on Tuesday, its highest since December 2002. Still, the dollar’s decline was limited as the Federal Reserve signalled more frequent rate hikes in 2017, partly on expectations for faster economic growth under the incoming Trump Administration.
While trade is expected to slow down ahead of Christmas, the market’s near-term focus is on U.S. economic indicators due Thursday, including revised GDP for July-Sept, durable goods orders for November, and weekly initial jobless claims.
“The market is relatively quiet on a holiday mood, but if the U.S. economic data is worse than the market expects, the dollar is likely to be sold further,” said Kumiko Ishikawa, FX market analyst at Sony Financial Holdings.

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